New Foreclosure Requirements for Community Associations

The Legislature adopted new restrictions on all community associations’ ability to foreclose on homes for delinquent assessments. These restrictions are found in HB 1482.

Key Provisions:

  1. You cannot start a foreclosure if less than 3 months of regular dues or $200 (whichever is larger) is delinquent. You cannot count fines, late fees, interest, or attorney fees to calculate the delinquent amount for this purpose.
  2. No sooner than 90 days after the account becomes delinquent, the association must mail a Notice of Delinquency containing specific language detailed in HB 1482. The Notice must be mailed to the owner’s mailing address (as provided to the association) and to the unit or lot address. You cannot start a foreclosure if this notice is not mailed.
  3. You cannot start a foreclosure until 180 days after the amount calculated in section 1 above is delinquent.
  4. To start a foreclosure, the Board must specifically approve that action against each individual owner. (A policy or manager decision is not adequate.)

Recap:

  1. The law sets a minimum balance due before you can begin a foreclosure lawsuit; 3 months of dues or $200, whichever is larger.
  2. The law creates a new notice requirement to the owner before a foreclosure lawsuit can be started. But the account must be delinquent at least 90 days to send this notice. (This amount delinquent is not tied to the amount in step 1.)
  3. The law creates a minimum period of time that the association must wait before a foreclosure lawsuit can be filed. For now that is 180 days after the minimum amount is delinquent.

What the law does NOT do:

  1. Prevent you from sending normal delinquency notices after any missed payment.
  2. Prohibit late fees or interest being assessed or collected.
  3. Affect any other collection remedy in your governing documents, including personal lawsuits, utility termination, rent intercept, etc.

Governor’s Proclamation Affecting Association Delinquencies & Meeting Procedures

Washington State Governor Jay Inslee has issued many proclamations suspending and/or modifying state laws in order to provide financial relief to individuals affected by COVID-19. Recent proclamations affect what community associations can do when an owner falls behind on assessments, but also allows electronic meetings for all associations for the next month. It is possible…

Common Facilities and COVID-19

Many communities have questions about managing their common facilities in light of the COVID-19 virus. Associations need to balance the needs of the larger community against protecting the health and safety of their members. This memo contains general information, not legal advice. We cannot give legal advice without review of your governing documents and your…

Annual Meetings and COVID-19

Many communities have questions about whether and how to conduct annual meetings in light of the COVID-19 virus. Especially given the ban on gatherings and closures of schools. Communities need to balance the need to conduct Association business against protecting the health and safety of their members. Before discussing some options, remember that the general…

Does WUCIOA Eliminate Restrictions on Assessments in the CC&Rs of an Existing HOA?

We believe that section 326 of the Washington Uniform Common Interest Ownership Act (“WUCIOA”) eliminates any restriction on assessment increases within the CC&Rs of an existing HOA. Our legal argument is strongest in cases of a special assessment. However, the argument should also prove to be successful for dues increases contained within the regular budget….

How does a Community Adopt WUCIOA?

For currently existing condos, co-ops, and homeowner associations, there is a process to adopt the Washington Uniform Common Interest Ownership Act (“WUCIOA”). First the owners must vote to amend the declaration and choose to be governed by WUCIOA. Second, the board must vote to amend the declaration to remove provisions which directly conflict with WUCIOA….

Short Term Rentals – Commercial Use?

One question we get from clients more and more frequently in this age of Airbnb (and all of its competitors) is how an association can deal with short-term rentals under their existing documents. Many association documents restrict the use of dwellings to “residential purposes,” but this undefined term has led to problems in its use…

WUCIOA – What is it, and why should my community association care? Topic 7: Board Committees

WUCIOA provides an ability for Boards form Committees to conduct some Board Business. (But this is not legal advice for your specific association) The Washington Uniform Common Interest Ownership Act (WUCIOA) is a new law that takes effect on July 1, 2018. Most of it only applies to HOAs and Condos created after that date….

WUCIOA – What is it, and why should my community association care? Topic 6: Actions without Board Meetings

WUCIOA provides a limited ability for Boards to take action by email . (But this is not legal advice for your specific association) The Washington Uniform Common Interest Ownership Act (WUCIOA) is a new law that takes effect on July 1, 2018. Most of it only applies to HOAs and Condos created after that date….

WUCIOA – What is it, and why should my community association care? Topic 5: Electronic Notice

WUCIOA provides for electronic notice to members who “opt in” to such notice. (But this is not legal advice for your specific association) The Washington Uniform Common Interest Ownership Act (WUCIOA) is a new law that takes effect on July 1, 2018. Most of it only applies to HOAs and Condos created after that date….

New Foreclosure Requirements for Community Associations

The Legislature adopted new restrictions on all community associations’ ability to foreclose on homes for delinquent assessments. These restrictions are found in HB 1482.

Key Provisions:

  1. You cannot start a foreclosure if less than 3 months of regular dues or $200 (whichever is larger) is delinquent. You cannot count fines, late fees, interest, or attorney fees to calculate the delinquent amount for this purpose.
  2. No sooner than 90 days after the account becomes delinquent, the association must mail a Notice of Delinquency containing specific language detailed in HB 1482. The Notice must be mailed to the owner’s mailing address (as provided to the association) and to the unit or lot address. You cannot start a foreclosure if this notice is not mailed.
  3. You cannot start a foreclosure until 180 days after the amount calculated in section 1 above is delinquent.
  4. To start a foreclosure, the Board must specifically approve that action against each individual owner. (A policy or manager decision is not adequate.)

Recap:

  1. The law sets a minimum balance due before you can begin a foreclosure lawsuit; 3 months of dues or $200, whichever is larger.
  2. The law creates a new notice requirement to the owner before a foreclosure lawsuit can be started. But the account must be delinquent at least 90 days to send this notice. (This amount delinquent is not tied to the amount in step 1.)
  3. The law creates a minimum period of time that the association must wait before a foreclosure lawsuit can be filed. For now that is 180 days after the minimum amount is delinquent.

What the law does NOT do:

  1. Prevent you from sending normal delinquency notices after any missed payment.
  2. Prohibit late fees or interest being assessed or collected.
  3. Affect any other collection remedy in your governing documents, including personal lawsuits, utility termination, rent intercept, etc.

Governor’s Proclamation Affecting Association Delinquencies & Meeting Procedures

Washington State Governor Jay Inslee has issued many proclamations suspending and/or modifying state laws in order to provide financial relief to individuals affected by COVID-19. Recent proclamations affect what community associations can do when an owner falls behind on assessments, but also allows electronic meetings for all associations for the next month. It is possible…

Common Facilities and COVID-19

Many communities have questions about managing their common facilities in light of the COVID-19 virus. Associations need to balance the needs of the larger community against protecting the health and safety of their members. This memo contains general information, not legal advice. We cannot give legal advice without review of your governing documents and your…

Annual Meetings and COVID-19

Many communities have questions about whether and how to conduct annual meetings in light of the COVID-19 virus. Especially given the ban on gatherings and closures of schools. Communities need to balance the need to conduct Association business against protecting the health and safety of their members. Before discussing some options, remember that the general…

Does WUCIOA Eliminate Restrictions on Assessments in the CC&Rs of an Existing HOA?

We believe that section 326 of the Washington Uniform Common Interest Ownership Act (“WUCIOA”) eliminates any restriction on assessment increases within the CC&Rs of an existing HOA. Our legal argument is strongest in cases of a special assessment. However, the argument should also prove to be successful for dues increases contained within the regular budget….

How does a Community Adopt WUCIOA?

For currently existing condos, co-ops, and homeowner associations, there is a process to adopt the Washington Uniform Common Interest Ownership Act (“WUCIOA”). First the owners must vote to amend the declaration and choose to be governed by WUCIOA. Second, the board must vote to amend the declaration to remove provisions which directly conflict with WUCIOA….

Short Term Rentals – Commercial Use?

One question we get from clients more and more frequently in this age of Airbnb (and all of its competitors) is how an association can deal with short-term rentals under their existing documents. Many association documents restrict the use of dwellings to “residential purposes,” but this undefined term has led to problems in its use…

WUCIOA – What is it, and why should my community association care? Topic 7: Board Committees

WUCIOA provides an ability for Boards form Committees to conduct some Board Business. (But this is not legal advice for your specific association) The Washington Uniform Common Interest Ownership Act (WUCIOA) is a new law that takes effect on July 1, 2018. Most of it only applies to HOAs and Condos created after that date….

WUCIOA – What is it, and why should my community association care? Topic 6: Actions without Board Meetings

WUCIOA provides a limited ability for Boards to take action by email . (But this is not legal advice for your specific association) The Washington Uniform Common Interest Ownership Act (WUCIOA) is a new law that takes effect on July 1, 2018. Most of it only applies to HOAs and Condos created after that date….

WUCIOA – What is it, and why should my community association care? Topic 5: Electronic Notice

WUCIOA provides for electronic notice to members who “opt in” to such notice. (But this is not legal advice for your specific association) The Washington Uniform Common Interest Ownership Act (WUCIOA) is a new law that takes effect on July 1, 2018. Most of it only applies to HOAs and Condos created after that date….